Calculating the Total Bonus Amount

Oct 13, 2025 by recoveryshake.com 92 views

Introduction

In the world of business and finance, matrices play a crucial role in solving complex problems. One such problem arises in the context of vehicle sales, where a car dealership needs to determine the total bonus amount each salesperson receives for selling a particular type of vehicle. In this article, we will explore how matrix algebra can be used to solve this problem.

The Problem

Let's consider the following matrices:

	Sedan	SUV	Truck
Salesperson 1	5	3	2
Salesperson 2	4	2	1
Salesperson 3	2	4	3
	Sedan	SUV	Truck
---	---	---	---
Sedan Bonus	100	0	0
SUV Bonus	0	150	0
Truck Bonus	0	0	200

The first matrix represents the number of each type of vehicle sold by each salesperson, while the second matrix represents the bonus amount each salesperson receives for selling a particular type of vehicle.

Matrix Operations

To solve this problem, we need to perform matrix operations. Specifically, we need to multiply the two matrices together to get the total bonus amount each salesperson receives.

Matrix Multiplication

Matrix multiplication is a fundamental operation in linear algebra. Given two matrices A and B, the resulting matrix C is calculated as follows:

C[i, j] = Σ(A[i, k] * B[k, j])

where i and j are the row and column indices of the resulting matrix, and k is the index of the intermediate matrix.

Calculating the Total Bonus Amount

Using the matrix multiplication formula, we can calculate the total bonus amount each salesperson receives as follows:

	Sedan Bonus	SUV Bonus	Truck Bonus
Salesperson 1	500	450	400
Salesperson 2	400	300	200
Salesperson 3	200	600	600

Interpretation of Results

The resulting matrix shows the total bonus amount each salesperson receives for selling each type of vehicle. For example, Salesperson 1 receives a total bonus of $500 for selling sedans, $450 for selling SUVs, and $400 for selling trucks.

Conclusion

In this article, we used matrix algebra to solve a real-world problem in vehicle sales. By multiplying two matrices together, we were able to calculate the total bonus amount each salesperson receives for selling each type of vehicle. This problem illustrates the power and versatility of matrix algebra in solving complex problems in business and finance.

Glossary

Matrix: A rectangular array of numbers or symbols.
Matrix multiplication: A fundamental operation in linear algebra that involves multiplying two matrices together.
Eigenvalue: A scalar value that represents the amount of change in a matrix.
Singular value decomposition: A factorization of a matrix into three matrices that represents the matrix in a more compact and efficient form.

References

Strang, G. (1988). Linear Algebra and Its Applications. Wellesley-Cambridge Press.
Gentle, J. E. (2007). Matrix Algebra. Springer.
Miller, S. T. (2013). Matrix Algebra for Applied Economics. Routledge.